The United States FCC has implemented new legislation that directly affects Huawei. The commission announced a new law that terminates wireless carriers from accessing the Universal Service Fund when purchasing from a national security-deemed company. Acquiring this fund allows for corporations like AT&T or Verizon to access billions of dollars to buy new products or services. This is how wireless carriers purchase new devices in bulk. No longer will these carriers be able to buy from ZTE or Huawei, the two wireless corporations deemed to be a security threat in the United States.

The Head of the FCC noted that the upcoming threats from 5G Technology pose a massive risk to America’s security. They reiterated their efforts to stop these corporations from collecting information from American Citizens, with them noting that they won’t just sit idly by and hope that everything goes smoothly. This decision from the FCC poses a significant problem for the telecommunications manufacturer.

Huawei has already faced considerable scrutiny over their close relationship with the Chinese Government. Most lawmakers believe that the Chinese are using these tools for espionage on America. After the confirmation of the FCC’s new legislation, the Trump Administrations promise to block companies in the United States from engaging with Huawei has been kept. Senate moved to push this decision back or terminate entirely, but with the FCC’s agreement, this decision if forever immortalized into American law.

Huawei didn’t respond well to the confirmation that they will be banned from their largest selling market. A spokesperson with the Chinese Telecommunication Company stated that the FCC is basing their decision on mistaken assumptions, fake innuendos and selective information. They also mentioned that they think this new legislation is unlawful and that the FCC has zero evidence that Huawei poses a security risk to American Citizens. However, these bold claims from Huawei are unjust, with many data miners revealing their espionage tactics through cameras and microphones.

Carrier Backlash

The Telecommunication Carriers in the United States of America have begun expressing their discontent with the FCC’s decision. Verizon noted that Huawei offers equipment that is reliable and affordable, meaning that not nearly as much is taken from the Universal Service Fund. The FCC didn’t take kindly to their backlash, immediately proposing a new law that would force all wireless carriers in America to remove all Huawei Equipment Connections from their Networks. This would mean hundreds of thousands in the USA could lose access to their device. History should learn, you don’t mess around with the FCC.